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Vintage Coffee Revenue Jumps 64% as Shares Surge on Freeze-Dried Expansion Plans
The instant coffee maker reported a strong September quarter and laid out a new plant for premium freeze-dried coffee, and investors cheered.
Vintage Coffee and Beverages Limited shares jumped 9.99% after the company presented its second-quarter results for fiscal 2027 in a November 2026 investor briefing. The Bombay-listed maker of instant coffee and chicory also used the session to lay out plans for a premium freeze-dried coffee plant, and the market liked what it heard.
The numbers behind the rally are hard to ignore. Revenue from operations hit INR 222.97 crore in Q2, up 64.42% from a year earlier and roughly 38.5% higher than the previous quarter. Volumes reached 3,176 metric tons, including 2,581 tons of coffee and 595 tons of chicory. The company says its 11,000 metric ton annual facility is running at full capacity, which means it has no spare room to grow without new equipment.
Profitability improved even as shipping costs climbed. EBITDA reached about INR 42.2 crore, with margins of 18.91%, up 244 basis points from a year ago. Ocean freight costs roughly doubled, rising from about INR 7 crore to INR 14 crore, and that pressure showed up in selling expenses. The company offset part of the hit with a shift toward agglomerated coffee, a granulated format that typically sells at higher prices than standard spray-dried powder. Profit after tax came to about INR 28 crore, a 12.6% margin.
For the first half of the year, revenue rose nearly 62% to about INR 384 crore, while EBITDA grew more than 82%. When profits grow faster than sales, it usually means the business is getting more efficient as it gets bigger, and that is the story management is telling.
The next chapter is freeze-dried coffee. The company plans a 5,500 metric ton annual plant, with operations expected to begin in the first half of fiscal 2028. Freeze-drying is the process behind many premium instant coffees: it preserves more aroma and flavor than heat-based drying, and it usually carries a higher price tag on shelves. If the plant comes online on schedule, Vintage Coffee would add a more upmarket product line to its existing capacity, which already serves customers in more than 40 countries.
For shoppers, the takeaway is simple. Freight costs are a real pressure on coffee prices, and a company that can keep margins rising despite them has room to invest in better products. Whether that translates into a richer cup at your local store will depend on how the new plant performs once it starts running.
Read the company's full investor presentation at the original Investing.com report.
